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Amendments to the property management contract

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Sometimes, certain cases arise that require us to modify our policies and operational procedures. These changes in turn sometimes require us to amend the terms of our existing property management contracts.

This is why we have a stipulation in our standard Property Management contract that prescribes the proper way of handling the changes. Specifically, we will have to notify our client property owners of the upcoming change(s) at least 30 calendar days in advance. This advance notice is for the owner to have enough time to consider the proposed changes.

It is important to highlight that it is still entirely up to the owner whether they accept the new terms or not. If the proposed changes are unacceptable to the owner, they only need to let us know through email or traditional mail and we will initiate the process of terminating the management contract and of returning the property back to them.

On the other hand, if the proposed changes are acceptable to the owner, no further action is needed on their part. The new terms will take effect after the 30-day notice period.

Examples of these changes include the following:

• We have had several instances where the owners needed to renovate or apply major modifications to their property after handing it over to us. After the modifications, it meant we had to re-take the photos and re-create the virtual tour for the property. These works that need to be repeated, entail additional costs which was previously not covered by our contract. So we had to amend our contract with a provision clarifying that the additional costs to us, arising from the owner’s material modification of the property, will be on the owner’s account.

• Under our earliest contracts, we had to cover the recurring bills for the property during periods they are vacant. This was a manageable arrangement for us in the beginning – when there weren’t that many properties under our management. But as our inventory of properties grew, this arrangement proved to be unsustainable. So, instead of waiting until we will be unable to meet our obligation under this arrangement, we had to renegotiate the terms of our contract and added the provision that the bills for the property while it is vacant, would be separately paid by the owner.